Mykhailo Demkiv, financial analyst of the ICU group, reports that default on GDP warrants of Ukraine will not affect the hryvnia exchange rate or Eurobonds of Ukraine.
He informed Ukrainian News Agency about this.
"No, the missed payment on GDP warrants will not affect the Eurobond market or the hryvnia exchange rate. During the restructuring of Eurobonds in 2024, it was stipulated that cross-default on warrants would not apply to new instruments. Accordingly, the market did not react to the non-payment - the prices and yields of Eurobonds remained stable," Mykhailo Demkiv noted.
He also added that the hryvnia exchange rate is also not affected in this context. It depends primarily on the volume of currency interventions of the NBU and receipts of external financial support.
The main question regarding the warrants is whether the government will be able to agree on their cancellation or change of terms, and if so, on what terms.
As Ukrainian News Agency earlier reported, the National Bank does not see any negative impact from Ukraine's non-payment of GDP warrants.
Ukraine failed to make a payment on these securities in the amount of USD 665 million by the specified deadline on June 2.
Earlier, the Ministry of Finance reported that Ukraine would not make payments on government derivatives, the amount of which as of April 30 amounted to USD 665.4 million.
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